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NEW YORK — Gold, which peaked at nearly $1,900 an ounce two years ago, is moving sharply higher again after a painful 36% bear market slide that ended in June. What's driving the yellow metal back into the black and lighting up traders' quote screens with green? Fear.

Jittery investors are rushing back into the perceived safe haven as the U.S. weighs a military strike at Syria's government to avenge its use of chemical weapons against its civilians.

The price of gold has also risen sharply. On Tuesday, gold jumped $27.60 an ounce, or 2%, to $1,420.60. The latest price spike puts it up more than 17% from its June 27 bear market low of $1,211.60 an ounce.

If investors continue to flock to the "safe-haven" trade, there's a good chance that gold will keep climbing. "We're quickly approaching bull market territory," which is defined as a rally of 20% or more from a previous low, notes Robert Leiphart of Birinyi Associates.

"There's a lot of concern in the market. It's difficult to tell with any precision how the Syria crisis plays out," adds Russell, noting that no one knows what impact a U.S. strike would have on energy prices or how Syria and other countries, including Russia, would react. "The thought behind gold as a haven is that no matter what, you can count on gold" to maintain its value in volatile times.

Gold is jumping on US-Syria conflict concerns and Eric Zuccarelli tells TheStreet's Joe Deaux what more to expect ahead.
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